TaxTMI 
TaxTMI 
2021 (7) TMI 133
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....uently the reassessment order passed u/s. 147/143 (3) is invalid in law. 2. The learned Commissioner of Income Tax (Appeals) has erred both on facts and in law in upholding the action of the learned Assessing Officer in reducing the cost of plant and machinery block of Fixed Assets i.e. written down value during the relevant previous year allegedly on the ground that the waiver of loan is related to the cost of acquisition of plant and machinery block of assets and thereby reducing the claim of depreciation by Rs. 96,19,618/- being 25% of Rs. 3,84,78,473/-. 3. The appellant craves leave to add, alter or amend the ground of appeal at a later stage." 3. Briefly stated, the facts of the case are that original assessment order was framed u....
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....e 49% of the share holding in the Company. In terms of the aforesaid agreement in/addition to payment of the purchase price, Max India Limited was required to secure an unconditional release from letters of comfort given by CIIM to a bank in respect of certain facilities availed by the Company. The release was obtained by Max India Limited giving a Corporate Guarantee to the bankers. Upon fulfillment of the conditions stipulated in the aforesaid agreement the loans including accumulated interest thereon, given by CUM and its associates to the Company, were deemed to have been repaid in full and extinguished, during the financial year. Accordingly, loans related to acquisition of fixed assets amounting to Rs. 38,478,473 have been set off a....
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....t documentary evidences. We are of the considered view that the Assessing Officer has considered the return of income, computation of income, balance sheet, profit and loss account and tax audit report and raised queries and reviewed the reply of the assessee. We find that from these very records, the Assessing Officer noted and formed a belief that income has escaped assessment which means that there was no new tangible material or information. 12. The relevant note to the balance sheet, as extracted hereinabove, shows that the Assessing Officer wants to re-examine/review the very same note for assumption of jurisdiction u/s. 148 of the Act. In our considered opinion, this is nothing but change of opinion and absence of tangible new mater....
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....uld itself confer jurisdiction upon the AO to reopen the proceeding without anything further, the same would amount to giving premium to an authority exercising quasi judicial function to take benefit of its own wrong. 14. This decision of the Hon'ble High Court of Delhi [supra] was affirmed by the Hon'ble Supreme Court in 320 ITR 561. 15. The ld. DR strongly relied upon the findings of the CIT(A) which read as under: "1.4 I have considered the submissions made by the appellant and the order of the A.O. carefully. As per the provision of the section 147, this case falls under Explanation 2(c) of section 147 which is reproduced as under: (c) Where an assessment has been made, but- (i) income chargeable to tax has been under a....
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.... opinion and the fact of this case are distinguishable from the cases relied upon by the appellant. Since it is a clear cut case of excess relief allowed to the appellant in the original assessment, therefore, the action of the AO in issuing notice u/s. 148 after recording reasons is held as valid. Keeping in view the totality of the facts and position of law, the action of the A.O. is confirmed and this ground of appeal is dismissed." 16. We do not concur with the findings of the first appellate authority in as much as the facts of the case, as discussed hereinabove, clearly show that there was no new tangible material evidence which prompted the Assessing Officer to reopen the assessment and in fact, as held by the Hon'ble Delhi High....